REG - Woodbois Limited - Board Change, Strategic Initiatives & Joint Broker

WoodboisAnnouncement

29/12/2023 07:00

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RNS Number : 1244Y  Woodbois Limited  29 December 2023

29th December 2023

 

 

Woodbois Limited

("Woodbois", the "Group" or the "Company")

(AIM: WBI)

Executive Chair appointed

Strategic initiatives & operations

Joint broker

 

Woodbois Limited (AIM: WBI), the Africa-focused forestry, timber trading,
afforestation and voluntary carbon credit company is pleased to announce the
following changes to enhance its future development.

 

Executive Chair

 

As a result of the organisational review previously announced it has become
clear that the Company needs a full-time Executive Chair if it is to achieve
the demanding plans it is developing. Guido Theuns, who was appointed to the
Board on 4 December 2023, has been invited and has accepted this role with
immediate effect. He has extensive African and financial reorganisation
experience.

 

Guido said "There is much work to be done to ensure the value inherent within
Woodbois' assets is fully realised. I have been impressed by the team and its
spirit, as well as their determination to make the Company a great success. I
am confident in our ability to secure new resources as required, including
strengthening where required, and look forward to substantial  progress in
2024."

 

Graeme Thomson, outgoing Chair, will reduce the time he devotes to the Company
owing to his expanding other interests but has agreed to remain as Senior
Independent Non-Executive Director.

 

Strategic initiatives

 

Investors rightfully seek an attractive return on their investments,
accompanied by regular updates that offer transparent insights into the
Company's operations and plans. The Company is steadfastly dedicated to
enhancing its shareholder communication provided with consistent and
informative updates.

 

To enhance and realise the shareholder value inherrent in its assets and
objectives, Woodbois is undertaking four simultaneous strategic initiatives:

 

1.         Cost Streamlining: It will rigorously evaluate and optimise
costs where possible and necessary, including a comprehensive review of its
international legal structure.

 

2.         Production Optimisation: Maximizing wood production and
yields is paramount. It is implementing new team leadership, enhancing
production teams, and increasing shifts. This strategic move will not only
enhance efficiency but also instill pride in being a part of Woodbois.
Leveraging technologies such as StarLink connections will ensure faster and
transparent reporting.

 

3.         Trading Team Expansion: Woodbois is focused on expanding
its trading team, coupled with shortly finalising a $3.5 million trade finance
facility(1). This strategic step empowers our team to trade beyond Woodbois'
production volume, significantly contributing to Company profitability.

 

4.         Carbon Credits Business Plan: Following our engagement with
stakeholders at COP28 in Dubai, Woodbois is diligently working on a
comprehensive business plan for Carbon Credits, with its project in Gabon
being its first. This initiative holds the potential to become a lucrative
addition to our diversified business portfolio.

 

Woodbois finds itself at a pivotal juncture, and with confidence in its
capable management team and dedicated employees, the Board are optimistic that
it can effect positive change.

 

Our overarching goal is to reposition Woodbois as an attractive investment-a
company known for its excellence, reliability, cash generation and
profitability.

 

Operational Summary

 

·    Conditional $3.5m line of credit agreed to permit third party trading
operations to restart(1)

·    Further governmental negotiations re lease concession agreement for
carbon credit project expected to be concluded in H1 2024: plan to conclude,
secure project specific funding and commence pilot study

·    Negotiations on-going to enhance operational and financial
flexibility

·    Excellent progress on clearing a restrictive backlog of repairs,
maintenance and creditors

·    Estimated 2023 turnover of c$8 million reflects previously announced
events

·    Estimated H2 sawmill production of c.3,200 m3 and 2023 full year
production of c6,900 m3

·    Veneer paused throughout H2 to initially focus on sawmill operations:
2023 full year production c1,900 m3

·    Confidence in the outlook for 2024 compared with 2023.

·    A full Q4/2023 update and outlook will be released in late January
2024.

 

 

The Board firmly believe that 2024 will mark a positive and decisive turning
point for Woodbois.

 

 

 

Appointment of Axis Capital Markets as Joint Broker

 

The Company has also been increasingly aware of the need for a further
proactive broker to assist in marketing and promoting it as it develops and is
pleased to appoint Axis Capital Markets as Joint Broker from today alongside
Canaccord Genuity and Novum Securities.

 

(1) a $3.5m line of credit for trading has been agreed, subject to final
documentation expected in January 2024

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR").

 

 

Enquiries:

 

 Woodbois Limited

 Guido Theuns, Independent Executive Chair            + 44 (0)20 7099 1940

 David Rothschild, CEO

 Graeme Thomson, Independent Non-Executive Director
 Canaccord Genuity (Nominated Advisor and Broker)     + 44 (0)20 7523 8000

 Henry Fitzgerald-O'Connor

 Harry Pardoe

 Novum Securities (Joint Broker)                      +44 (0) 20 7399 9427

 Colin Rowbury, Jon Bellis
 Axis Capital Markets Limited (Joint Broker)          +44 (0) 203 026 0449

 Ben Tadd, Lewis Jones

 

Background on Woodbois

 

Woodbois Limited (AIM:WBI) is an Africa-focused forestry company, divided into
three distinct, but highly complementary divisions comprising the production
and supply of sustainable African hardwood products, the trading of timber and
timber products, and an afforestation and carbon credit division.

Woodbois' forestry division has production facilities in Gabon and Mozambique,
managing a total of c480,000 hectares of natural forest concessions. The
trading division comprises an experienced team of timber specialists, who
source and supply sustainable timber to a global customer base. Its
proprietary technology developed in-house, captures, stores and presents data,
providing a matching engine to build scale and optimise trading opportunities
with its global customer base.

The Company's carbon sequestration and trading division aims to generate
voluntary carbon credits for corporate partners through the delivery of
large-scale afforestation projects. It has been allocated land of c69,000
hectares in Gabon, its first such project.

The Company's focus on the transparency and sustainability of its timber
operations has been recognised by The Zoological Society of London, which
ranked Woodbois joint eighth in its Sustainability Policy Transparency Toolkit
('SPOTT'') ESG policy transparency assessments for the worldwide timber and
pulp industries for 2022.

The Company has a partnership with World Forest ID, to enhance the
traceability and identification of timber, originating from the Company's
forest concessions, firstly in Gabon. World Forest ID is an international
organisation, which is revolutionizing the protection of forests through the
application of science-based origin tracing and species identification. World
Forest ID is building an extensive global library of reference samples, from
various forest regions, for use in cross verification.

Please follow the Company on Twitter: @WoodboisLtd

 

 

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